Telstra (TLS)

Telstra
shareholders are not expected to vote against the NBN agreement at today’s annual general meeting, taking the company one step closer to its $11 billion compensation package.

However, Deutsche Bank warns that some risks remain: there’s still a chance that the Australian Competition and Consumer Commission will not approve the current proposed structural separation between the wholesale and retail divisions of the business; and the federal coalition has made noises about terminating the NBN if it is elected in 2013.

As a result, Deutsche Bank has reiterated its “hold" rating on the stock with a target price of $3.05, which analysts say incorporates a 10 cent risk-weighted upside based on the value of the NBN.